Peters losing patience with racing’s infighting

The boss of New Zealand racing — Deputy Prime Minister and Minister of Racing Winston Peters — has finally spoken out and it would appear he is losing his patience with the industry's relentless in-fighting.

Peters has kept his public comments about the racing industry brief during lockdown but suggested this week there could be Government support for the struggling industry in coming weeks, possibly announced as part of the May 14 Budget.

Peters has put his weight behind the Racing Industry Transition Agency (RITA, the board running the TAB) even though they have been under attack from many sectors.

The nonsensical talk of $5000 stakes, the TAB being insolvent and trainers striking may disappear for a while. The racing industry has many problems and one of the worst is constantly publicly shooting itself in the foot.

Peters is the single most important person standing between racing recovering and then improving, or basically being stuffed. Correspondence obtained by the Weekend Herald shows he is firmly backing RITA's actions and thinks the industry has been living beyond its means.

A respected industry employee wrote to Peters three times over recent months and received a reply on Thursday signed by the Minister which leaves little room for argument about where his loyalty lies.

"RITA inherited a structure which frankly has been living beyond its means for a number of years," wrote Peters.

"It faces the unenviable task of addressing that issue while negotiating all the implications of the Covid-19 crisis.

"Unfortunately some voices in the industry blame RITA for the problems they have inherited.

"This is unproductive. And we don't intend to stand by silent to such criticism when that criticism lays properly somewhere else.

"The Government will provide the industry with all the necessary tools to determine its future. However, collaboration and leadership from all levels of the industry are needed …"

The letter also backs the directors of RITA and suggests the Racing Bill could be back in front of Parliament before long.

Weekend Herald sources are suggesting it could be passed into law before the election which would, depending on the amendments suggested by the select committee, give racing more power to get things done.

So Peters is clearly not in the mood for the tail to be wagging the dog and its appears those who are, at best questioning or at worst undermining RITA, are also going up against the minister.

Two of the key issues for RITA, apart from the obvious lack of money and a worldwide pandemic, has been poor communication and outrage from industry participants over their staff levels and therefore expenditure.

Both are justified.

A recent letter from the Trainers' Association to RITA was handled poorly and often communication to the industry has been so complicated and full of corporate jargon. The people it is aimed at informing have no idea what it means.

RITA have also been purposely vague so as not to annoy other political forces while the racing industry applies for a support package. If that is granted, it isn't to prop up RITA, but support the codes.

It would be a prudent idea for the racing industry to present a united front as they are asking for Government help. And as for RITA's top-heavy expenses, it is now certain there will be a significant reduction in costs, including many redundancies inside the business.

RITA bosses are refusing to comment but it is definitely going to happen, with heads of departments already reporting on how they can achieve those savings, including staff cuts.

As for the hot-button issue of out-sourcing?

That is still on the horizon but with so much global uncertainty the major potential partners won't be negotiating hard deals any time soon. Implementation of any out-sourcing deal, if it happens, would be at least two years away and only if the Government of the day has an appetite for it.

But what Peters seems to have more of an appetite for is racing presenting a united front, especially as it joins the long queue of struggling industries seeking help.

Michael Guerin

Courtesy of the NZ Herald